Keynote
Data from the cipher shows that Bitcoin Zilla is reducing leverage, a bearish indicator. Bitcoin is facing a denial at $89,000, and is currently trading nearly $84,986 more than the US PCE data release.
Faced with a strong $89,000 denial, Bitcoin (BTC) prices have already staged some reversals ahead of the US PCE data release on Friday.
As of press time, BTC is down 1.76%, trading at $84,986, with daily trading volume rising 20% ​​to over $30 billion. The Bitcoin Macro Index shows signs of a bear market going forward.
Bitcoin Macro Index flashes warning sign
As BTCUSD struggles to break important resistance levels in the past, the chain metrics have already shown some weaknesses amid signs of losing bullish momentum. Developed by Capriole in 2022, Bitcoin Macro Index utilizes machine learning to analyze a wide range of metrics.
The index strongly illustrates the relative value of Bitcoin over the entire past market cycle.
However, since late 2023, the Bitcoin Macro Index has been at a lower high, while BTC/USD has been at a higher high, creating a “bearish divergence.” This pattern is norm in previous bull markets, but suggests that BTC/USD may already be at a long-term peak. This isn’t a very big sign, Edwards said.
Encrypted data shows that Bitcoin Zilla is reducing leverage and indicating a shift in market sentiment. The reduction in BTC flow to derivatives suggests a decrease in risk appetite among these large holders. Historically, this trend has often been linked to bear market movements.
BTC prices continue to face difficulties rising
“Bitcoin prices are facing even more negative side pressure, falling below $85,000 as US PCE core inflation was 2.8% higher than expected in February. Macro indicators continue to play a key role in affecting Bitcoin’s movements.
In support of one of the recent BTC price analysis, veteran trader Peter Brandt has confirmed that the BTCUSDT pair can see another $70,000 downside.
The expiration date for Bitcoin options today indicates that 139,000 BTC contracts are currently expired. Quarterly delivery accounts for more than 40% of the total option position, while BTC options represent almost 80% of these delivery.
The implicit volatility declined during this period as the massive volatility of BTC fell below 50%.
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Bhushan is a fintech enthusiast and has a good talent for understanding financial markets. His interest in economy and finance has attracted attention to new emerging blockchain technologies and cryptocurrency markets. He is constantly involved in the learning process and continues to motivate him by sharing the knowledge he has acquired. In his free time, he reads thriller fiction novels and sometimes explores his culinary skills.
X’s Bhushan Akolkar
